Economy Stats & Debt Flooding - Bartering Ideas?


Bartering is the key to success in all of whatever occurs.  PURCHASE ITEMS AND FOOD NOW TO BARTER WHEN YOU NEED TO.  Buy things specifically for those times when situations get rough as you will have living GOLD to exchange. 

DO NOT HOARD (READ HERE!) as that creates its own problems,  but be ready to barter whatever you think someone may value as an exchange during hard times.  Have it ready for whatever situation may occur in your region in the near future,  or after the 7 of 10.

How can one prepare for this financial situation if the grid stops working?  What will be the expectations?  It is likely most folks will hope the local community or government will provide for them.  However,  just take note of how the Asia Pacific flooding has been handled to get an idea of the kind of help one may get.

While the Financial Condition of the global economy is still spiraling, the Zetas mentioned before the PS there will be much bartering going on.   With the 7 of 10 being expedited from the Christmas Hammer it is likely this will cause great havoc financially and socially.  Just to add to that the world has absolutely NO IDEA what will be the new situation.


Broke! 10 Facts About The Financial Condition Of American Families That Will Blow Your Mind


The crumbling U.S. economy is putting an extraordinary amount of financial stress on American families.  For many Americans, "flat broke" has become a permanent condition.  Today, over half of all American families live paycheck to paycheck.  Unemployment is rampant and those that do actually have jobs are finding that their wages are rising much more slowly than prices are.  The financial condition of average American families continues to decline and this is showing up in all of the recent surveys.  For example, according to a new Gallup poll, "lack of money/low wages" is the number one financial concern for American families.  To make ends meet, many American families are going into even more debt and more American families than ever are turning to government assistance.  Right now, more Americans than at any other point since World War II are flat broke and have lost hope.  Until this changes, the frustration level in this country is going to continue to grow.

The following are 10 facts about the financial condition of American families that will blow your mind.....

#1 Only 58 percent of Americans have a job right now.

Only 58 percent of Americans have a job right now

#2 Only 56 percent of Americans are currently covered by employer-provided health insurance.

#3 The median yearly wage in the United States is $26,261.

#4 The average American household is carrying $75,600 in debt.

#5 Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.

#6 At this point, American families are approximately 7.7 trillion dollars poorer than they were back in early 2007.

#7 The poorest 50% of all Americans now own just 2.5% of all the wealth in the United States.

#8 According to one study, approximately 21 percent of all children in the United States were living below the poverty line in 2010.

#9 Today, there are more than 44 million Americans on food stamps, and nearly half of them are children.

#10 According to Newsweek, close to 20 percent of all American men between the ages of 25 and 54 do not have a job at the moment.

So what is causing all of this?

Where in the world did all of the good jobs go?

Well, the truth is that millions of them have been shipped overseas.

Our politicians promised us that merging our economy with the economies of other nations where it is legal to pay slave labor wages to workers would not create more unemployment inside America.

They were dead wrong.

Now we are being told that we just need to accept a lower standard of living.

For example, billionaire Howard Marks says that it is time for all of us to just accept that the standard of living of American workers is inevitably going to decline to the level of the rest of the world....

"In addition to balancing the budget and growing the economy, I think we have to accept that the coming decades are likely to see U.S. standards of living decline relative to the rest of the world. Unless our goods offer a better cost/benefit bargain, there’s no reason why American workers should continue to enjoy the same lifestyle advantage over workers in other countries. I just don’t expect to hear many politicians own up to this reality on the stump."

Are you willing to accept that?

Meanwhile, the job losses continue to get worse.  As I wrote about the other day, as the U.S. economy has started to slow down again we are starting to see another huge wave of layoffs all over America.

You can stop waiting for the "good jobs" to come back.

They aren't coming back.

That is one reason why I try to encourage everyone to become more independent of the system.

As our economic system continues to degenerate, Americans are going to become increasingly desperate.

Sadly, desperate people do desperate things.  Already we are starting to see signs that the fabric of American society is starting to be ripped to shreds.

So what is going to happen if the economy gets even worse?

There is a limit to how many people we can actually put in prison.  The reality is that the number of Americans in prison has nearly tripled since 1987.

Our prisons are already dangerously overcrowded.  As society falls apart, many communities will simply not be able to shove more people behind bars.

Even with our prisons stuffed to the gills, many of our largest cities continue to be transformed into absolute hellholes.

Detroit is now the 3rd most dangerous city on the entire planet and New Orleans is now the 9th most dangerous city on the entire planet.


While we await the 7 to play out, mounting personal debt is having a slowing effect on preparation. How did it all start?? Here is an interesting video series on banks and debt (click the series).

With a slowing economy worldwide, little money is left to spend on preparing a Safe Location. But NOW is the time to do this. Unfortunately, anything which has not happened yet is trivial for some family members to face. Those who want to prepare are simply out of luck with assistance from those who don't see the need yet.

Are you able to afford moving to your Safe Location? Can you afford to buy land or a property AND build your own safe home? Got any extra money to help anyone else? Got just gas in the car and hoping for the best? Community building really should begin NOW before things get too difficult to prepare after the 7 of 10. Learn some basics of rugged living here if you can only just rough it. and you will be amazed!:




20 Reasons Why Millions Of Americans Under The Age Of 30 Are Giving Up On The U.S. Economy

Millions upon millions of young Americans have completely lost faith in the U.S. economy and are mad as hell that their economic futures have been destroyed.  The recent economic downturn has hit those under the age of 30 the hardest.  Today, there are hordes of young people that should be entering their most productive years that are sitting home with nothing to do.  Many of them have worked incredibly hard throughout high school and college.  Many of them have stayed out of trouble and have done everything that "the system" asked them to do.  But once they got finished with school, the promised "rewards" simply were not there.  Instead, millions of young Americans are faced with crushing student loan debt loads in an economy where they can't find good jobs.  When you are in your twenties, it can be absolutely soul-crushing to send out hundreds (or even thousands) of resumes and not get a single interview.  Most of us grew up believing that we would "be something" when we got older, and millions of young Americans are having those dreams brutally crushed right now.  Americans under the age of 30 voted for Barack Obama in droves back in 2008 because they believed that he would make things better.  Instead, Barack Obama has made things even worse.  Significant numbers of young Americans are starting to wake up and realize that neither political party is providing any real answers, and they are starting to get mad as hell about it.

Americans under the age of 30 don't want to hear that they are not going to be able to do better than their parents.  They don't want to hear that they are going to have to "pay the price" because of the mistakes of previous generations.  They don't want to hear that the "good jobs" that have been held out as a "carrot" for them all these years have disappeared and are not coming back.

Millions of young Americans want what was promised to them.  They want good jobs that will enable them to enjoy the "American Dream".  They want things to go back to the way that things used to work in America.

If you spend much time around those in their twenties, you know that many of them have a look of hopelessness in their eyes.  Large numbers of them have moved back in with their parents.  Large numbers of them are flipping burgers or working retail jobs part-time because that is all they can find.  There are even a growing number of them that have given up entirely and have completely checked out.

So are we in the process of creating a "lost generation"?

The following are 20 reasons why millions of Americans under the age of 30 are giving up on the U.S. economy....

#1 Only 55.3% of Americans between the ages of 18 and 29 were employed last year.  That was the lowest level that we have seen since World War II.

#2 Today, there are 5.9 million Americans between the ages of 25 and 34 that are living with their parents.

#3 The economic downturn has been particularly tough on men.  According to Census data, men are twice as likely to live with their parents as women are.

#4 Amazingly, less than 30 percent of all U.S. teens had a job this summer.

#5 Approximately one out of every five Americans under the age of 30 is currently living in poverty.

#6 According to one recent survey, only 14 percent of all Americans that are 28 or 29 years old are optimistic about their financial futures.

#7 Since the year 2000, incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation.

#8 The cost of "getting an education" has become increasingly burdensome in recent years.  Average yearly tuition at U.S. private universities is now up to $27,293.  That figure has increased by 29% in just the past five years.

#9 In America today, approximately two-thirds of all college students graduate with student loans.

#10 Millions of young Americans are absolutely being financially strangled by horrific student loan debt loads.  Sadly, the total amount of student loan debt in the United States now exceeds the total amount of credit card debt in the United States.

#11 In 2010, the average college graduate had accumulated approximately $25,000 in student loan debt by graduation day.

#12 One-third of all college graduates end up taking jobs that don't even require college degrees.

#13 In the United States today, there are more than 100,000 janitors that have college degrees.

#14 In the United States today, 317,000 waiters and waitresses have college degrees.

#15 In the United States today, approximately 365,000 cashiers have college degrees.

#16 In the United States today, 24.5 percent of all retail salespersons have a college degree.

#17 As the economy has crumbled, fewer young Americans have been getting married.  Today, an all-time low 44.2% of Americans between the ages of 25 and 34 are married.

#18 Young Americans are becoming increasingly frustrated as our politicians stand by and do nothing while our economy is being hollowed out.  The sad truth is that United States has lost an average of 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001, and top politicians in both major political parties keep pushing for even more job-killing "free trade" agreements.

#19 Young Americans are becoming increasingly frustrated that pretty much the only jobs that seem to be available are low paying jobs.  Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

#20 Young Americans are becoming increasingly frustrated that previous generations have saddled them with a 14 trillion dollar national debt that they are expected to make payments on for the rest of their lives.

A lot of young Americans swing back and forth between anger and despair.  Many of them worked like crazy for years because of the promise of a better life, and now they are being bitterly disappointed.  Just consider the following testimonial that was recently posted on The Atlantic....

I am in my mid-20s. I have a university education. I started working when I was 14. I have chemical burns and scars over my hands from dealing with caustic cleaning chemicals. I did not want that to be my life like my uncles. I had to get out. I worked very hard in high school and volunteered and was the member of clubs and all of that great stuff. I got into a good university and worked hard. I took a language course, took things that I loved. I worked through my degree - I was even a janitor in a building that I lived in, because I needed the cut in rent. I did that for no pay.

After these months of unemployment I have fallen into a pretty major depression. I live at home, I do chores, I look for work. As much as I want to get my life together, I have some great mental health issues to deal with - but have neither the money to purchase medication that may help me, nor the ability to pay for psychological or psychiatric help.

So what can be done?

Well, someone could wave a magic wand and fix the U.S. economy, but we all know that is not going to happen.

In fact, there is all kinds of evidence that the U.S. economy is about to get even worse.

So should we just tell our young people that they might as well just give up and start making rap videos about using food stamp cards like this one?  (*Warning* The video contains some very strong language.)

The number of Americans on food stamps has increased by 74 percent since 2007.  Millions of young people are learning that the only way to survive is to be dependent on the government.

It certainly does not help that our entire education system is deeply broken.  For example, did you know that the verbal scores on the SAT for the class of 2011 were the lowest ever recorded?

Our students have become so "dumbed down" that large numbers of them can barely even function in society once they graduate.

That is not their fault.

That is our fault.

We have failed young Americans in so many ways that it would take a series of books to detail them all.

We can say that we are sorry, but that just isn't going to cut it.

Millions of young Americans want what was promised to them, but we no longer have it to give to them.

Anger in this nation is already starting to boil over in strange and unpredictable ways.  If the economy gets even worse, we are going to have tens of millions of young Americans that are mad as hell and that are ready to riot in the streets.

What are we going to do then?

According to a recent Gallup poll, 81 percent of Americans are "dissatisfied with the way the nation is being governed".

That is not a sign of a healthy nation.

The sad truth is that the foundations of America are crumbling and we have millions upon millions of young people that are incredibly angry and incredibly frustrated.

It does not take a genius to figure out that is a recipe for disaster.


Wage pic source:




The new Barter System is emerging. Here is some Zeta Talk on it:
Dropping Dollar
Barter Systems:
"In that one's skill sets can be considered a bartering item, one should examine their own skill set by the following exam. If you were in the middle of a wilderness, alone, what steps would you take to survive? What is the first skill that you would need, and not have? Whom do you know that you would wish about you, in such as circumstance? What is that skill that they possess, that you perhaps could develop? Imagine a group in such a setting, having arrivedat a land dump where various pieces of junk are about and could provide mechanical devices or shelter, if utilized creatively and resourcefully. How would you go about creating a comfortable home for yourself, and others, in such as situation? If you are clueless on how to use junk to structure a home, recycle and hook up, then perhaps you should work with a junk man, in his yard, and take lessons! What we are
telling you is that you should mentally put yourself in this setting, and you will have no difficulty determining what is useless or most worthwhile, in a skill set. If you are an accountant, and cannot translate this skill into
becoming a tailor or herdsman or cook, your skill is useless!"

Barter System to replace money in some regions:
"We advise the common man, as we have in the past, to relieve
themselves of stock and jewels and paper money that will fall in value, perhaps suddenly and without warning. Better to stock up on things that will have value, candles and matches, school books and a guitar, than what the rich treasure."


Paper Promise:

"During the Great Depression, the world was not beset with natural disaster after natural disaster, as is starting to occur today. Commerce, trade, was reduced due to lack of confidence but at the base, the economies were solid and recovery followed renewed confidence. Today, all countries are in a crisis affecting their base economies. We mentioned that Crop Failure would follow the irregular weather, and it did. But buildings collapsing in earthquakes, trains running off suddenly twisted tracks, factories exploding as gas lines breach, and storms tearing at coastlines without remorse do more than represent an opportunity to rebuild."


ZetaTalk Prediction 7/30/2011:
We have mentioned that the status quo is likely to be continued up to and even into the Last Weeks, as those who benefit from the status quo see no alternative for themselves. Bankrupt countries will continue to print money, devaluing their dollars, as the alternative is to declare bankruptcy, making their money virtually worthless. This attitude extends to corporations and the banking industry, where their failure is a specter too gruesome to contemplate, envisioned as making matters worse, so they are pumped up with loans or legislation to avoid failures and layoffs. It is the lack of alternatives that drives the process. This is a global issue. All are likely to stumble forward thus, maintaining the status quo, until the public has switched entirely to the barter system as the only medium of exchange that has any meaning.




In the Aftertime, the barter system will be the way of exchange as money will no longer exist. To make a gradual adjustment, it may be helpful to discuss it here if you like. Got any ideas on how to not get burned? How does one get the most out of the barter? Bartering is a skill that gets better with time. It is not our current system, so it must be understood so that it will work comfortably every time.



Got anything to share? What skills or trades work best in an Aftertime environment? How about what can be traded NOW before the 7 completes or before the PS?????


Showing the economic changes for better or worse may also be helpful to put things in perspective. Just as flooding of rain water is happening worldwide, economic statistics are SOARING for unemployment, bankruptcies, home foreclosures worldwide. Feel free to share input on that!


Rick Rickster

Views: 6111


You need to be a member of Earth Changes and the Pole Shift to add comments!

Join Earth Changes and the Pole Shift

Comment by Lana on August 14, 2013 at 8:28pm

Well, I think that the main problem with making soap will be where to find fat! I f you will have some, you will probably use it for cooking.

Comment by Corey Young on August 14, 2013 at 5:24pm

Another thing to consider for bartering is soap. There have been people here in the past (on other blogs) who have directions on how to make your own. but it is fairly easy.

If I am not mistaken (I could be but this is the jist of it I am sure); You mix ash from wood burning fire with boiled fat from any meat source. And you can add your own scents to it as well. After this cools it can be cut and used as a soap.

This can be very useful in bartering if there are those that don't know how to make it!

Basically, don't just focus on things that one can CREATIVE and look to things that can be made with the resources found around you. You may be suprised at what you come up with and how useful it can be. The aftertime will definitely be a time for invention as much as survival / adaptability!





Comment by Ryan Giorgis on August 14, 2013 at 2:51am

Fishing hooks and line are something that Nancy and the Z's have long said will be priceless.  Reels, and poles at that point would also be priceless, though are easy to make.  Needles and lots of thread, even sinew and tougher needles for leather work will find their time.  Wool, fleece, and polyester shirts and pants are awesome on a cold wet river, so should hold value.  just a few ideas:)

Comment by Corey Young on August 13, 2013 at 9:22pm

So I found this on Yahoo this morning:

Bartering is back in business

From professionals to politicians, everyone's thinking about how to barter better - are you?

MÉXICO, D.F. Barter Market/ Mercado del Trueque" width="512" height="342"/>


Though this is no a big article the fact that they not only mention the origins and the new cases of people using the barter system, but also ENCOURAGE it are big news makers here on the NING:


Try it yourself

So, here's a fun idea: try putting together a community trade post where your neighbours can barter with one another and learn some negotiation skills to boot. You can advertise it in your local classifieds or spread the buzz through word-of-mouth.

Comment by Beva on May 24, 2012 at 5:45am

Many Greeks are already using alternative currencies for barter eco...

VOLOS, Greece — People in this central Greek city are rejecting the euro before it rejects them.

Comment by Rick Rickster on May 15, 2012 at 6:29am
Comment by Rick Rickster on May 13, 2012 at 8:50pm

These articles from 2010 reveal how the systematic wealth distribution is getting slimmer and slimmer and definitely continues into 2012:

2010: 22 Statistics That Prove The Middle Class Is Being Systematic...

2010: 15 Mind-Blowing Facts About Wealth And Inequality In America

While the millionaires have gotten wealthier,  a cyclic continuation of diminishing wealth has also affected government funded programs causing cuts across the board in many states. See the history of Austerity cutbacks since 2010:

2010: The 18 States Facing The Most Brutal Austerity Cuts (Nevada r...

Has any of this improved since these articles were published?

Comment by Rick Rickster on May 13, 2012 at 7:17am

J.P. Morgan’s losses reveal market. chaos

Commentary: Dimon’s bank slapped hard by out-of-control markets


May 10, 2012, 10:21 p.m. EDT  NEW YORK (MarketWatch) — And then there were none.

J.P. Morgan Chase & Co. JPM +0.25%  , the last bank on Wall Street with any semblance of industry dignity for how it managed and comported itself in the financial crisis, on Thursday became the latest confidence-shaking bank on Wall Street to get waylaid by today’s financial system.

It’s a system that by now is so obviously out of control that you have to wonder if we should just call off the charade of regulation. Credit-default swaps, interest-rate swaps, massive derivative hedging bets, dark pools all run by algorithms — the markets are so run amok, they’re humiliating the smartest guys on Wall Street. And there is none smarter than Jamie Dimon at the top of an institution.

J.P. Morgan Chase & Co. Chairman and CEO Jamie Dimon.

That isn’t to say over the next few days there will be an effort to brush this one off, just as the financial media and Wall Street salesmen glossed over the failure of Bear Stearns and Lehman Brothers.

Already two alternate narratives are making their way into the media. The first is that the J.P. Morgan’s $2 billion trading loss and $800 million or more blow to earnings is the result of some rogue in England known in the markets as the London Whale. ( See MarketWatch report on J.P. Morgan loss. )

The second narrative is one told by The Financial Times in the aftermath: that this loss is inconsequential.

“So far the numbers are not enough to dent J.P .Morgan’s balance sheet, nor its capital-adequacy ratios much, nor its ability to return money to shareholders,” the publication said in it’s “Lex” column, adding that it would only serve to give “ammo” to bank critics.

Big money at the big banks

Take a look at how much money the big banks scored in the first quarter, and consider what Bank of America's founders would think about the B. of A. of today? Photo: Getty Images.

The problem with both explanations isn’t that they’re wrong — to the contrary, it’s that they are very likely right.

First, this “London Whale” and its enormous positions in the debt markets has been the subject of worry in the markets for months. So, the suggestion that he, or they, had somehow “gone rogue” is troubling. For it wasn’t just J.P. Morgan that was aware of the risk, it was anyone — the public, regulators and investors — bothering to look at the headlines who saw the potential coming.

Comment by Rick Rickster on May 13, 2012 at 7:08am

Zetas right again!  The economy continues its decline.  Read the trends...

Economic Alert: If You’re Not Worried Yet…You Should Be

Tuesday, 08 May 2012 04:58

Article Source

For the past four years I have been covering the progression of the global economic crisis with an emphasis on the debilitating effects it has had on the American financial system.  Only once before have I ever issued an economic alert, and this was at the onset of the very first credit downgrade in U.S. history by S&P.  I do not take the word “alert” lightly.  Since 2008 we have seen a cycle of events that have severely weakened our country’s foundation, but each event has then been followed by a lull, sometimes 4 to 6 months at a stretch, which seems to disarm the public, drawing them back into apathy and complacency.  The calm moments

before each passing storm give Americans a false sense of hope that our capsized fiscal vessel will somehow right itself if we just hold on a little longer...

I don’t have to tell most people within the Liberty Movement that this is not going to happen.  Unfortunately, there are many out there who do not share our awareness of the situation.   Debt implosions and currency devaluation NEVER simply “fade away”; they are always followed by extreme social and political strife that tends to sully the doorsteps of almost every individual and family.  The notion that we can coast through such a tempest unscathed is an insane idea, filled with a dangerous potential for sour regrets.

There are some people who also believe that the private Federal Reserve with the Treasury in tow has the ability to prolong the worst symptoms of the collapse indefinitely, or at least, until they have long since kicked the bucket and don’t have to worry about it anymore (the ‘pay-it forward to our grandkids’ crowd) .  I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year.  You can only stretch a sun-boiled rubber band so far before it snaps completely, and America’s financial elasticity has long been melted away.

A pummeling hailstorm of news items and international developments have made the first half of 2012 almost impossible to track and analyze.  The frequency at which negative information has surfaced is almost dizzying.  However, a pattern and a recognizable motion are beginning to take shape, and, I believe, a loose timeline is beginning to form.

At the end of January,
I covered the incredible nosedive of the Baltic Dry Index
(a measure of global shipping rates that signals a fall in global demand) to historic lows.  I pointed out the tendency of stocks and the general economy to crash around 8 months (sometimes a little longer) after the BDI makes such a dramatic downturn.  Mainstream analysts, of course, attributed the fall to an “overproduction of ships”, which is the same exact excuse they used when the BDI collapsed back in 2008 just before the derivatives bubble burst.  It would seem that the cable TV talking heads were wrong yet again, as the international market facade quickly evaporates right in line with the BDI’s almost prophetic knack for calling an economic derailment in advance.

Here are some of the most important reasons why every American should be prepared for much harder days, especially before the end of 2012:

The European Union Is Officially Dead In The Water

Stick a fork in er’, the EU is done!  We are talking about full scale dismantlement, likely followed by a reformation of core nations and multiple collapse scenarios of peripheral countries.  The writing is all over the wall in the wake of the latest election results in Greece and France, where, as alternative researchers have been predicting for some time, the battle between the government spending crowd and proponents of austerity has reached a fever pitch.

The Greeks and the French are royally pissed over draconian cuts in public programs and the destruction of pensions which have been a mainstay of their economies for quite some time.  They are also furious over being sold off like collateral to the IMF and World Bank.  Rightly so.  Like the American taxpayer, the taxpayers of floundering EU nations are wrongly being held responsible for the financial mismanagement and fraud of their governments and global banks which have remained untouched and unpunished for their trespasses.  The problem is, the voters of both countries are signing on to the socialist/quasi-communist bandwagon in response.  In Greece, the Left Coalition Party, a splinter group of the traditional communist party, has now taken a primary position of power:

In France, voters have elected socialist Francois Hollande (a Bilderberg attendee), whose latest promise is to spend France into recovery through his “pro-growth agenda”:

I have no doubt that the elections of the EU are as manipulated by elitists as they are here in the U.S., and I’m sure false paradigms abound.  Have Europeans forgotten that it was overt government spending that set them on the path to calamity in the first place?  Or, are they like Americans; just desperate for any change in the ranks of leadership?  One would think that they would take note of the problems here in our country and realize that electing a socialist to replace another socialist is no way out of economic hardship.

Former officials like Nicolas Sarkozy may have claimed to be distanced from the socialist ideal, but, as with all globalist puppets, their actions did not match their rhetoric, and they have always supported policies of centralization and big government.  The French and the Greeks have essentially replaced closet collectivists with outspoken collectivists, and will see NO relief from the crisis in the Euro-zone as a result of the political reordering.  In fact, the stage has now been set for a volatile chain of dominos.  Germany, which is the only economy left holding the EU together, has been unyielding on austerity cuts.  A conflict between France and Germany is now inevitable.  Neither will compromise their position, and I can see no other eventual result than a reexamination and perhaps abandonment of the EU charter.

How does this affect America?  Being that international banks and corporations have forced our countries into interdependency through the engineered chicanery of globalization, any collapse in Europe is going to strike hard around the world, but the worst will hit the U.S. and China.  Which is probably why China is disengaging trade away from the U.S. and the EU and focusing on other developing nations:

If you thought the Greek rollercoaster was a pain in the neck for investment markets, just wait until the whole of the EU is in a shambles!

Spain is next in line, with a 25% official unemployment rate and a massive black market economy forming.  As I have been saying for years now, when governments disrupt the financial survival of the people, they WILL form their own alternatives, including black markets and barter markets.  It is about survival.  The Spanish government does not care much for these alternatives, though, and has now banned cash transactions over 2500 euros in a futile attempt to squeeze taxes out of the populace through digitally tracked payment methods:

Another major concern for Americans is the fact that Europeans are inching towards an abandonment of the dollar.  Francois Hollande has openly called for an end to the dollar’s world reserve status, and with a majority backing of the French people, he could easily make this happen, at least where France is concerned.  All it takes is for a few key countries to publically and completely drop the Greenback and the dollar’s reputation as a safe haven investment will be quashed.  This could very well happen before 2012 is over.

QE3 Is The End

Here is the bottom line; U.S. growth is a theater of shadows.  There has been no progress, no recovery, only the misrepresentation of statistics.  Millions of Americans have fallen off unemployment rolls because they have been jobless for too long, which lowers the unemployment rate, but does not change the fact that they are still without work.  Durable goods orders are dropping like an avalanche.  U.S. credit has been lowered yet again by ratings agency Egan-Jones.  With China making bilateral trade deals in numerous countries on the condition that the dollar be dropped as the primary purchasing mechanism, and with the EU turning to economic mulch, the currency’s safety is nonexistent.  Traditional investors who cling to the idea that a falling Euro spells dollar strength will be sorely disappointed when the currency is suddenly being rejected in international currency markets.

The Federal Reserve has already stated that any signs of “relapse” into recession (the recession that we never left) will be met with all options on the table, including QE3:

I believe that QE3 will probably be announced this year (due in large part to trauma from Europe), and, that this will trigger a mass movement by foreign nations to drop the dollar as the world reserve.  QE3 will be the straw that broke the camel.  How exactly this will play out socially and politically, I do not know (I could take a good guess though).  But, the technical results are predictable.  The Fed will respond to the lack of treasury purchases by ramping up fiat printing in order to cover the ever increasing costs of the government machine.  The Greenback will immediately lose a large portion of its value, at least in terms of imported goods, causing inflation in prices.  Oil and energy prices will skyrocket if OPEC follows suit (which they will, though the Saudis may still honor dollars for a time).  Doing any traditional business will become nearly impossible, and price inflation will dominate the lives and the minds of average unprepared citizens.

The amount of time that it will take for these difficulties to unfold is also not clear.  We are operating in uncharted territory, and dealing with a collapse scenario on a truly planetary scale.  My best advice is to assume that the avalanche will move fast.

While markets in our country have seen only mild disruptions so far this year, their solidity is predicated on a host of props and costume pieces, any one of which could pull the rug out from under America’s suspension of disbelief if it strays but a little from the illusion.  As long as the dollar holds, stocks can be infused with bailout juice through major banks.  So can major companies and even desperate state governments on the verge of bankruptcy.  The Dow will remain relatively friendly, and day traders and the public will remain happy.  As soon as the dollar comes into question, all bets are off…

Does This Mean Doom, Or Just Another Bad Day?

The real beginning of today’s collapse is tied to the events of 2008.  The pace of it has been deceptive, but also, in a way, it is a gift.  Over the past four years, I have personally seen the awakening of thousands of people that may have never had the chance if the system had gone into full spectrum breakdown right away.  The question now is, how much longer can the U.S. wobble along on one wheel?  In my view, and from the evidence I see in markets at the moment, not much longer.

It is hard to set aside any expectations that the next leg down will be easy to digest for the populace.  The reality of our predicament is starting to hit home.  All the tax return checks have been spent.  The credit cards have been maxed.  The new cars have been sold off and traded in for ghetto-mobiles.  The good jobs have been replaced with Taco Bell slavery.  A trip to see The Avengers is now the family vacation.  And, the distractions of reality TV just aren’t buttering our bread anymore.  It’s the little things at first that really signal the financial mood of a society, as well as reveal the more vital and looming issues just over the horizon.

All indicators suggest that this year will be unlike any other before.  In 2008, we saw the first trigger events for the collapse.  In 2008/2009, we saw the creation of the bailout culture, setting the stage for inflation and dollar disintegration.  In 2010, we saw the first bilateral trade deal cutting out the dollar between China and Russia, which is now the template for trade deals all over the globe.  In 2011, we saw the first downgrade of the U.S. credit rating and the crisis in the EU become epidemic.  In 2012, I see not just another difficulty to add to the mountain, but a culmination of all these detriments to produce something entirely new; a vast and subversive realignment forcing many of us to take a more aggressive stance in the fight for an economically and socially free America.

Financial disasters have always been a convenient catalyst for a host of even more frightening obstacles, including civil unrest, and blatant totalitarianism.  This is the cusp.  It is one of those moments that people of later generations read about in awe, and sometimes horror.  The “doom” is not in the event, but in the response.  What we make of the days approaching determines the darkness that they cast upon the future.  It is a test.  It is not something to be dreaded.  It is something to be seized upon, and dealt with, as great men and women before us have done.  At the very least, we know that it is coming.  That, in itself, could well seal our success…

Comment by Rick Rickster on May 13, 2012 at 6:38am

Europe Is ‘Slowly Crumbling’: Expert

Published: Tuesday, 8 May 2012 | 6:26 AM EST CNBC Associate Editor

The euro is not a unifying force and the debt crisis has shown the differences between the euro zone nations rather than enhancing unity, Chris Tinker, founder at Libra Investment Services, told CNBC Tuesday.

“The permanent cost of debt is not uniform anymore. The euro is not a unifying force,” Tinker said on CNBC’s “Worldwide Exchange.” “We are having to manage in what is a slow crumbling of what the euro was about.”

He added that investors had become much more inward-looking since the debt crisis had taken hold and were now “country focused.”

“Investing in Europe en masse is changing and the political events at the weekend reinforced that. French investors are investing in French stocks, French bonds and French assets,” he said. “It’s not that they think the euro is going to break up. It’s more a realignment of assets and liabilities.”

The political chaos now being played out in Greece has reignited calls for the debt-laden country to leave the euro zone bloc.

Elections in both France and Greece have seen the electorate rise up against the raft of austerity measures being rolled out across various countries in the euro zone.

In Greece, two thirds of the vote on Sunday went to parties that opposed the international bailout plan.

However, Tinker said the reality of the situation in Greece was far more complicated.

“It’s a binary decision. If Greece gets itself to the point where the European administration says, ‘We can’t play this game anymore,’ that starts a domino effect,” he said. “They are between a rock and a hard place.”

He warned that Greece would have to play by the rules to retain its place within the euro club as “throwing their toys out of the pram” was not an option for them.

Carsten Brzeski, senior economist at ING told CNBC the European Central Bank would be limited what it could do to prevent the situation in the euro zone from imploding, saying the picture was “very bleak” for the region.

“It is not the task of the ECB to solve the crisis. They cannot solve the crisis,” he said. “We have a fundamental, structural crisis that has to be solved by politicians and the mantra of structural adjustments. It is a no-go to renegotiate the fiscal compact but have a growth compact alongside it.”

SEARCH PS Ning and Zetatalk



You can support the ning by using the above button. 


© 2017   Created by Gerard Zwaan.   Powered by

Badges  |  Report an Issue  |  Terms of Service